Use this checklist to see if transferring real estate to a charitable trust is a good option for you. Would you like to:
- Sell your property and avoid capital gains tax on the transfer?
- Be eligible for an immediate income tax deduction?
- Receive lifetime income for yourself and/or other beneficiaries?
- Step down from the role of landlord?
- Avoid the need for a 1031 exchange?
- Convert a non-income producing second home into a lifetime income stream?
- Make a difference in the lives of people with cancer, diabetes and other serious illnesses?
If you answered “yes” to any of these questions, transferring your property to a charitable trust may be your answer.
One Couple’s Story
Birdie and Bob Feldman were looking to simplify their lives, spend more time on their favorite pastime — boating — and have a charitable impact. They came upon the perfect solution. To demonstrate their support for City of Hope, they made a gift of real estate: an apartment building they bought as an investment years ago.
“With the support of City of Hope’s expert Planned Giving team, the Feldmans created a charitable trust, which enabled them to sell the property and avoid incurring capital gains tax on the transfer. The proceeds from the sale were invested, and the Feldmans receive an annual income that will continue for both their lifetimes, after which the remainder will be used to support lifesaving research and patient care.
“Forty years of being a landlord is enough. Even though we have a management company, being a landlord is very demanding. We want to be able to go on vacation without having to worry about the property … and spend more time on our boat than we are able to now. And we found a way to help people at the same time!” says Bob.
Example: Income and Tax Deduction From Donated Real Estate
The figures contained herein are for illustration purposes only and should not be considered legal, accounting or professional advice. Your actual benefits will vary depending on several factors, such as age, cost basis and current property value, the state in which the property is located and timing of funding a Charitable Remainder Trust.
Please contact us for a no-obligation, complimentary consultation.
